News release

CalSTRS Underwrites Line of Credit for NYC Water

 Sacramento, CA  – California State Teachers’ Retirement System recently underwrote a line of credit for New York City Municipal Water Finance Authority’s variable rate bonds. CalSTRS partnered with State Street Bank & Trust to provide a line of credit totaling $200 million for the Authority. The transaction will allow the Authority to pay down its commercial paper and fund a portion of its capital projects.

The New York City Municipal Water Finance Authority is the first entity to take advantage of the geographically expanded credit enhancement program. The program has been in existence for more than 11 years, but focused its business primarily in California. CalSTRS provides credit enhancement for a fee to municipal issues; this enhancement permits municipal issuers to pay a lower interest rate on their debt.

“We’re glad to be able to offer this low-cost financing to municipalities and other public entities throughout the nation,” said Christopher Ailman, chief investment officer of CalSTRS. “Our program provides an attractive alternative to funding community projects while it helps assure the financial security of California’s educators.”

CalSTRS credit is rated Aaa by Moody’s, AAA by Fitch and AA+ by Standard & Poor’s.

“CalSTRS provides the New York City Water Finance Authority with a strong credit that is very well received by the investor community” said Alan Anders, executive director of the New York City Water Finance Authority.

Entities interested in CalSTRS credit enhancement program or to find out about requirements may contact cepinquiries@calstrs.com.

With a $134 billion investment portfolio, CalSTRS is the third-largest public pension fund in the United States. It provides retirement, disability and survivor benefits to California’s public school teachers from kindergarten through community college, serving more than 755,000 members and their families.


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